Mastek Ltd (IT - Software) — fundamental analysis, earnings data, and key metrics. PE: 12.3. ROE: 15.6%. This stock is not currently in the Nifty 500 momentum outperformers list.
Based on Q4 FY26 earnings • Updated Apr 19, 2026
What: 12-month Order Backlog: ₹2,849.2 Crore
Impact: 24.4% YoY growth
“This momentum is supported by 24.4% Y-o-Y growth in our 12-month order backlog, driven by continued strength in the UK and US Orderbook.”
What: Revenue per Employee: 12% improvement
Impact: Sustained 16.1% margin
“Our outcome focused drive on AI has helped deliver a 12% improvement in revenue per employee and helped sustain EBITDA margins at 16.1%.”
What: US Orderbook: $30 million-plus
“Our North America order book, for example, has delivered a $30 million-plus order book in this quarter, and we see sustained order book momentum.”
What: AI-assisted deals: 85+ deals
“During the quarter, we closed over 25 AI-assisted deals, taking the full-year total to 85+ deals.”
What: 12-month Order Backlog growth of 24.4% YoY
“This momentum is supported by 24.4% Y-o-Y growth in our 12-month order backlog, driven by continued strength in the UK and US Orderbook.”
What: ₹8 per share (interim) → ₹16 per share (final)
“Reflecting our continued commitment to shareholder returns, the Board has recommended a final dividend of ₹16 per share, aggregating to 480% for the year.”
Earnings deceleration risks from management commentary
Trigger: Statutory changes in labor definitions and annual appraisal cycles.
Impact: PAT impact: ₹6.4 crore (Q3 impact)
Management view: Conservative assumptions taken in books; awaiting final clarifications from the labor department.
Monitor: labor
Trigger: Government reorganization of spend towards Healthcare and Defense requiring cost savings elsewhere.
Management view: Moving to outcome-based contracts to share productivity gains.
Monitor: regulatory
Trigger: Exposure to GBP and USD revenue.
Impact: PAT impact: 17 bps margin impact
Management view: Active hedging for the next 12 months ($6.7mn and £21.5mn).
Monitor: fx
Key quotes from recent conference calls
“Sushovon, we are looking at maintaining it between 16.5% to 17% like I said earlier. So that's the range that we're comfortable with. [Previous EBITDA Margin guidance]”
“Our outcome focused drive on AI has helped deliver a 12% improvement in revenue per employee and helped sustain EBITDA margins at 16.1%. [Initiative: Lead with AI Strategy]”
“In North America, leading indicators are turning positive, supported by an execution-focused leadership team... the strengthening pipeline provides confidence in a gradual recovery. [Initiative: North America Leadership Overhaul]”
“despite absorbing the impact of annual wage revisions and labour code true-ups... EBITDA includes an impact of INR 6.4 crores on account of labour code changes. [Risk (labor): MEDIUM]”
Headline numbers from the latest earnings call
Revenue
₹938.0 Crore
Why: Growth was driven by continued strength in the UK and US orderbook, improving revenue visibility despite absorbing wage revisions.
Revenue recovered sequentially after a seasonally weak Q3.
EBITDA
₹150.7 Crore
Why: Margins were sustained through AI-led productivity gains which delivered a 12% improvement in revenue per employee, offsetting wage revisions.
EBITDA margins remained flat QoQ but improved 75bps YoY.
PAT
₹106.2 Crore
Why: PAT declined sequentially due to the impact of annual wage revisions and labor code true-ups absorbed during the quarter.
Sequential PAT was impacted by one-time labor code adjustments.
Other Highlights
• Closed over 25 new AI-assisted deals in Q4, totaling 85+ for the full year.
• DSO improved to 73 days from 84 days in the previous quarter.
• Cash and cash equivalents reached ₹938.5 crore, a healthy addition of ₹139.7 crore.
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
12-Month Order Backlog (INR)
₹2,849.2 Crore
Why: Driven by continued strength in the UK and US Orderbook.
Total Employee Count
4,730
Why: Sequential increase due to hiring in Data and Salesforce capabilities, while YoY decline reflects productivity focus.
LTM Attrition
17.4%
Why: Improved retention and stable talent environment.
Utilization (Net of Leave)
85.7%
Why: Slight sequential drop due to higher leaves and trainees integration.
DSO Days
73 days
Why: Emphasis on working capital efficiency and resolution of administrative delays in the UK.
UK & Europe Revenue %
66.4%
Why: Strong focus in healthcare which grew by 95% YoY in the UK.
US Revenue %
21.5%
Why: Market still evolving and recovering from previous leadership changes.
Fixed Price Revenue %
42.7%
Why: Strategic shift to outcome-based contracts to share AI-led productivity gains.
Active Clients
326
Why: Focus on larger, higher-value accounts and tail account rationalization.
New AI Deals (Quarterly)
27
Why: Translating 'Lead with AI' strategy into measurable outcomes.
Forward-looking targets from management for FY27
OPM Guidance
16.5–17%
Accelerated growth in FY27
REAFFIRMED
Guidance Changes
Dividend: ₹8 per share (interim) → ₹16 per share (final)
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 19, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Mastek Ltd's latest quarterly results (Mar 2026) show
Mastek Ltd's current PE ratio is 12.3x.
Mastek Ltd's price-to-book ratio is 1.7x.
Mastek Ltd's fundamental strength based on key financial ratios
Mastek Ltd has a debt-to-equity ratio of N/A.
Mastek Ltd's return ratios over recent years
Mastek Ltd's operating cash flow is positive (FY2026).
Mastek Ltd's current dividend yield is 1.37%.
Mastek Ltd's shareholding pattern (Mar 2026)
Mastek Ltd's promoter holding has decreased recently.
Mastek Ltd is an established outperformer with 1 weeks of consecutive Nifty 500 outperformance.
Mastek Ltd has 6 key growth catalysts identified from recent earnings analysis
Mastek Ltd has 3 key risks worth monitoring
In Q4 FY26, Mastek Ltd's management highlighted
Mastek Ltd's management has provided the following forward guidance for FY27
Mastek Ltd's most important sub-sector-specific KPIs from the latest concall
Based on quantitative research signals, here is why Mastek Ltd may be worth studying
Mastek Ltd investment thesis summary:
Mastek Ltd's forward outlook based on current data signals
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
